System and method for verifying the authenticity of a check and authorizing payment thereof

ABSTRACT

A system and method for verifying the authenticity and payment of a bank check at any of a plurality of banks or check cashing sites, wherein a payor or issuing site determines a first set of data including account and individualized payee data, which is communicated to a processing center for temporary storage and eventual comparison. Upon presentation of the check for redemption, the cashing site will establish a second set of data at least including the pre-printed account data and, depending on the embodiment, the individualized payee data that appears on the face of the check when presented. The second set of data is communicated to the processing center where the first and second sets of data are compared. Subsequent to comparison, authenticating data will be communicated to the cashing site, which is indicative of redemption authorization or refusal.

CLAIM OF PRIORITY BACKGROUND OF THE INVENTION

The present application is a continuation-in-part application of apreviously filed, now pending application having Ser. No. 10/270,860,filed on Oct. 15, 2002; which has matured into U.S. Pat. No. 6,808,109on Oct. 26, 2004, which is a continuation-in-part application of apreviously filed application having Ser. No. 09/458,974, filed on Dec.10, 1999 which matured into U.S. Pat. No. 6,464,134 on Oct. 15, 2002.

1. Field of the Invention

This invention relates to a system and method for verifying theauthenticity of a bank check at the time the check is presented fordeposit or cashing, by comparing both the account data and theindividualized payee data appearing on the face of the check withaccount data and individualized payee data added to the check, at thetime the check was issued. A positive comparison comprises the contentof the first and second sets of data being identical, and results in averification of authenticity of the check and an authorization to pay,while the detection of any differences between the first and second setsof data will result in a non-verification signal being communicated tothe site where the check is presented for deposit or cashing.

2. Description of the Related Art

As early as 1993, the American Bankers Association and the NationalRetail Federation sponsored an inter-industry task force, known as theBank Check Fraud Task Force, for the purpose of examining a variety ofpossible solutions to the ever increasing problem associated with checkfraud. The task force developed, among other solutions, a data sharingprogram for closed accounts. This program is designed to prevent people,who have outstanding checks due to retailers, from opening new accounts.For example, participating financial institutions report all checkingaccounts closed, for cause, to a central data base called ChecksSystems. This central data base transmits the closed account informationto the shared check authorization network (SCAN) data base.Participating banks use the SCAN information before opening newaccounts, to detect repeat offenders. A participating bank can also useMICR information from a check presented with the applicant's driver'slicense number to check the SCAN file for any previous bad accountactivity.

Other attempts to solve the problems of check fraud include electroniccheck presentment, which is an electronic/paper method of expeditingcheck collection. Participating banks exchange check payment informationbefore physically presenting the checks for payment. The depository bankcaptures payment information from the MICR line of incoming checks andimmediately transmits the information electronically to the paying bank.Later, the depository bank sends the actual check according to itsnormal paper deadline. During check posting, the paying bank identifieschecks that should be returned and immediately notifies the depositorybank. Supporters of this system believe that it speeds up processing,controls cost and reduces fraud by providing early notification ofreturn items.

Another preventative measure directed to the avoiding of losses fromfraudulent check presentation includes “positive pay”, which allows acompany and its bank to work together to detect check fraud byidentifying items presented for payment that the company did not issue.In the typical case, the company electronically transmits to the bank alist of all checks issued on a particular date. The bank verifies thecheck received for payment against that list and pays only those itemson the list. The system further allows the bank to reject checks thatexceed a specific dollar amount or checks that carry dates that havelong past (stale checks). The bank investigates rejected checks to findout if the items are fraudulent or in error. The bank only paysexception items which are approved directly by the issuing company.

Yet another preventive measure is termed “reverse positive pay” and issimilar to “positive pay” but comprises a somewhat reverse process. Inpractice, the issuing company, rather than the bank, maintains a list ofthe checks issued on a given date or over a given period. When thechecks are presented for payment and clear through the Federal ReserveSystem, the Federal Reserve prepares a file of the check's accountnumber, serial number and dollar amount and sends the file to the bank.The bank then sends the file to the issuing company, and the companycompares the information received from its bank with its internalrecords. The company then informs the bank as to which checks match itsinternal information and the bank pays only those verified check items.Subsequently, the bank researches the checks that do not match, correctsany misreads or encoding errors, and determines if any items arefraudulent. The bank pays only “true” exceptions that can be reconciledwith the company's files.

While the attempts, of the type set forth above are primarily applicableto prevent check fraud at the institutional level, there is still a needto protect the payor as well as retail establishments, at the retaillevel. More specifically, there is a need for a system designed andstructured to protect companies or other payors, against check fraud,when the checks are subsequently presented for redemption at any of alarge number of the banks or check cashing agencies. It is of courserecognized that one or more systems do exist, wherein the bank, checkcashing agency, or retail establishment use conventional telephonecommunication with a central data base for purposes of determining ifadequate funds are available to cover the check presented. However sucha system, while most applicable for use by certain retailestablishments, does not protect against attempts to fraudulently altereither the payee or the value of the check. Also, known systems of thetype set forth above are time consuming, and not particularly usefulwhen a bank or other cashing agency is presented with a large number ofchecks over a short period of time, such as in the case of payrollchecks.

Accordingly, there is a need in this area for a system and accompanyingmethod to easily, quickly and efficiently accomplish verification of theauthenticity of checks at the time the check is presented for payment ordeposit. Such an improved system should be capable of withholdingauthorization for payment of the check until individualized payee data,comprising payee identification and value of the check, is compared withand accurately corresponds to the payee identification and value of thecheck, as intended and as originally printed on the bank check by theissuing company or payor. Such an improved system and method should alsobe capable of taking advantage of modern day computer and electroniccommunication facilities and thereby significantly reduce or eliminateany delay in accomplishing verification of check authenticity andauthorization for payment at the site where the check is presented fordeposit or cashing. In addition, such an improved system andaccompanying method may also include communication with a central datasystem of the type associated with the existing automatic teller machine(ATM) networks for purpose of isolating or suspending funds of the payorin an amount at least equivalent to the value of the checks beingissued.

SUMMARY OF THE INVENTION

The present invention is directed towards a system and an accompanyingmethod for the processing of bank checks or other negotiable instrumentsin a manner which eliminates or significantly reduces the problemsassociated with check fraud. Check fraud of the type referred to hereinincludes, but is not limited to, alteration of the check by changing thepayee and/or the value of the check from that originally intended by theperson or company that issued the bank check. The system and method ofthe present invention, while particularly adaptable for use by companiesperiodically issuing a relatively large number of checks, such aspayroll checks, is also readily adaptable for use in the prevention ofcheck fraud involving personal checks which may be typically presentedfor redemption or for payment of goods or services at a retailestablishment.

More specifically, an individual, company or other entity representingthe payor includes at least one terminal, hereinafter referred to as an“issuing terminal”, which comprises sufficient processing capabilitiesto store and integrate various data. The issuing terminal furtherincludes input facilities preferably in the form of both a scannerassembly, which may comprise an optical scanner or other electronicreader, and a manual keyboard. In addition, a printer may be associateddirectly with the issuing terminal, so as to produce receipts and/orhard copies of the information or data regarding the one or more checksissued. It is emphasized that for purposes of clarity, the system andmethod of the present invention will be described with regard to thepreparation and processing of a single bank check. However, it should beobvious that any number of such bank checks could be identicallyprocessed, such as when a company is preparing a number of payrollchecks for any given pay period.

In initially preparing to issue a check, personnel at the issuingterminal preferably optically scan or electronically read thepre-printed account data appearing on the check, wherein such accountdata normally includes an account number, check number, bank routingnumber, etc. Along with the account data, individualized payee data isentered into the issuing terminal, either manually, such as by using theassociated keyboard or by any other applicable means. Alternatively, theissuing terminal and the associated scanner assembly can be structuredand/or have sufficient capabilities to also electronically read oridentify the individualized payee data, which would be printed on theface of the bank check by computer, printer or other known orspecifically modified hardware, such as by establishing a direct link orintegral configuration between the issuing terminal of the presentinvention, and the facilities, such as a specific payroll softwareprogram, which are provided for the generation of the checks and/oraccount record keeping. In this situation the keyboard and associatedprinter, while available for other functions, would not be required tomanually enter the aforementioned individualized payee data from theface of the check, as the initial entry and/or generation of theinformation for initial placement on the check can also serve to enterthe information into the issuing terminal. It should also be noted thatthe issuing terminal could include scanning equipment, as part of itsassociated scanner assembly, which is structurally designed to functionin a manner similar to the equipment used to “swipe” credit cards, andneed not be an elaborate computer processor system. By virtue of suchscanning techniques, both the account data as well as the payee datacould be integrated into the processor and memory of the issuingterminal electronically, utilizing the scanning equipment having such“swipe” capabilities, and if necessary an associated key pad. Whetherautomatically or manually entered into the issuing terminal, theindividualized payee data preferably includes the identity of the payeeas well as the dollar amount or intended value of the bank check. Onceentered, the processing facilities at the issuing terminal and theassociated memory thereof, would serve to integrate the account datawith the individualized payee data and thereby establish what may bereferred to as a first set of data.

Once established, the first set of data is communicated by anyapplicable means to a processing center typically located remote fromthe issuing terminal. The processing center includes sufficientprocessing and computer facilities to accomplish at least initial ortemporary storage of the first set of data for later processing in amanner which will assure the absence of check fraud, as will beexplained in greater detail hereinafter.

At least one but more practically a preferably large number of “cashingterminals” are preferably located at a number of different banks, checkcashing agencies and other establishments, including retailestablishments, where the bank check may be presented for redemption.The cashing terminal also preferably includes sufficient inputfacilities to establish what may be referred to as a second set of data.The second set of data is more specifically defined by both the accountdata as well as individualized payee data, which appears on the face ofthe check being presented for redemption. Using the cashing terminal,personnel to whom the bank check was presented for redemption, wouldenter the account data, preferably by optically scanning or otherwiseelectronically reading the pre-printed account data appearing on thebank check. In addition, at least a portion of the individualized payeedata would also be entered, preferably manually through the use of akeyboard, keypad or like facilities, wherein the customized payee dataentered would include at least the dollar amount or value appearing onthe face of the check. Accordingly, once the account data, and at leasta portion of the customized payee data, is integrated into the cashingterminal, thereby establishing the aforementioned second set of data,the second set of data would be communicated to the processing center.Once received by the processing center, a central processing unit orother processing facilities, remote or integral with the cashingterminal and/or issuing terminal would perform a comparison processbetween the content of the first set of data received from the issuingterminal and the content of the second set data received from thecashing terminal. A positive comparison would comprise the content ofboth the first and second sets of data being identical, in that theaccount data as well as at least the value of the check and possibly theidentification of the payee appearing on the face of the check presentedfor redemption, would identically correspond to the same informationwhich defines the first set of data supplied to the processing center bythe issuing terminal. To the contrary, a negative comparison wouldresult when, for example, the individualized payee data appearing on theface of the check presented for redemption has a value greater than ordifferent from the value of that check supplied by the issuing terminaland initially stored in the processing center prior to comparison. Thecomputer or processing facilities at the processing center would thengenerate either a verification signal or non-verification signal, whichwould be communicated directly to the cashing terminal. Upon receipt ofa verification signal, personnel at the site of the cashing terminalwould be authorized to redeem the check in terms of allowing itsdeposit, or exchanging it for cash. However, the receipt of anon-verification signal would prevent authorized redemption of thepresented check and require further processing either by the processingcenter or the personnel at the site where the cashing terminal islocated.

Yet another preferred embodiment of the system and method of the presentinvention comprises a modification of the content of the first set ofdata, which is determined at the issuing terminal or site and the secondset of data, which is determined at the cashing terminal or site. Aswith the above described preferred embodiment, the first set of datapreferably includes account data and payee data. However, the second setof data generated at the cashing terminal or site may comprise only theaccount data of the bank check when presented for redemption. Theaccount data defining the second set of data can be determined and/orgenerated by optically or electronically reading the account dataappearing on the bank check. This account data, defining the second setof data, is communicated to the central processing center and thecentral processing unit associated therewith. The account data definingthe second of data is then compared with only a portion of the first setof data; namely the account data on the bank check as determined asbeing part of the first set of data previously communicated to theprocessing center. When the account data of the second set of data isidentical to the account data of the first set of data the result willbe a positive comparison. A negative comparison will result when theaccount data of the second set of data is not identical to the accountdata portion of the first set of data.

Subsequent to the comparison of the first and second sets of data, asset forth above, the processing center and the central processing unitassociated therewith will communicate “authenticating data” to thecashing terminal or site. The authenticating data is “variable” at leastto the extent that the content thereof will vary depending upon thedetermination of a positive comparison or a negative comparison betweenthe first and second sets of data. Accordingly, the authenticating data,upon the determination of a positive comparison between the account dataof the first and second sets of data will comprise at least a portion ofthe payee data. More specifically, upon determination of a positivecomparison, the monetary amount of the check and/or the identity of thepayee of the check, as determined at the issuing site, will becommunicated to the cashing site. Once received at the cashing site, thecommunicated portion of the payee data will be compared with acorresponding portion of the payee data appearing on the bank check whenit is presented for redemption. If the contents of the communicationportion of the page data are identical, personnel at the cashing sitewill thereby be authorized to redeem the check for cash or deposit.Naturally, discrepancies between the monetary value of the bank check orthe identity of the payee of the bank check as determined at the issuingsite, from those portions of the payee data appearing on the bank checkwhen presented for redemption at the cashing site, will result in arefusal to redeem the bank check.

The absence of a requirement to include the payee data in the second setof data will facilitate the processing of the check at the cashing siteor terminal. More specifically, personnel at the cashing site orterminal will not be responsible for entering, reading, generating, etc.any portion of the payee data appearing on the bank check. Instead, adirect comparison with the portion of the payee data communicated fromthe processing site, defining the authenticating data, with acorresponding portion of the payee data appearing on the bank check atthe time of redemption, can be quickly and easily accomplished.

Additional features of the system and method of the present invention,applicable for use with each of the above described preferredembodiments, may include the issuing of an individual access code to thecompany or other entity representing the payor. In addition to otherfeatures associated with the access code, to be described hereinafter,the access code can be used to link the payor and the payor's checks tothe processing center. By way of example, in situations where a checkwas presented by a cashing terminal to the processing center thatresulted in a negative comparison, either the processing center or thesite of the cashing terminal at which the check was presented couldcontact the personnel at the issuing terminal or issuing site andrequest specific authorization by requesting both specific account dataand individualized payee data of a given check number. In doing so theauthenticity of the information provided by the issuing company or payorcould be verified by first receiving and accepting the aforementionedidentifying access code, representative of the payor. Use of the accesscode may also occur in specialized situations when, for example, one ormore bank checks properly issued by the payor were inadvertently notregistered with the processing center. Accordingly, data relating to an“unregistered” check presented by a cashing terminal to the processingcenter would result in a negative comparison, since there would be norecord of the check being issued. Verification of a valid issued checkcould therefore be accomplished through use of the identifying accesscode as set forth above.

In addition to the above, the implementation of the system and method ofthe present invention may also include communication with a central datasystem of the type associated with the various automatic teller machine(ATM) networks existing throughout the country. In operation, uponcompletion of the issuing of the one or more bank checks by the issuingterminal, the first set of data, including both the account data and atleast a portion or all of the individualized payee data, would becommunicated to the central data system. The central data system wouldthereafter suspend or isolate funds in an equal amount to the value ofthe issued check. Similarly, when a check is presented for redemptionand payment or deposit of the check is authorized, communication couldbe received from either the site of the cashing terminal or alternatelyfrom the processing center to debit the amount of the redeemed checkfrom the suspended or isolated funds. Other data associated with theindividual redeemed check could also be registered and stored in memoryfor subsequent communication to the issuing terminal or payor includingcheck number identification of the payee, etc. The suspension orisolation of the funds from the account on which the one or more bankchecks are drawn would further serve as security against check fraud, inthat any check presented for redemption and drawn on an account of thepayor would not be debited against the suspended or isolated funds,unless such check was first registered with the processing center inaccordance with the system and method of the present invention, as setforth above.

Additional modifications are also contemplated and may be included incertain preferred embodiments of the system and method of the presentinvention. Such additional modifications include situations where thecheck being prepared at the issuing terminal includes portions of thedata, particular the payee data, which are not specifically determined.By way of example, the issuer can insert the amount on the check as “anamount not to exceed $250.00” Two possible alterations can occur when aportion of the payee data has been deemed to be “not to exceed, etc”.The first alteration can be to increase the amount, for example; from$250.00–$500.00. The second alteration can be to change the payee datato an exact amount. However, once the exact amount has been input itcannot be altered again. Once the amount changes from “an amount not toexceed, etc.” to an exact amount, it cannot be altered thereafter.Related modifications may include the inclusion on the bank check of aspecific or determined amount wherein the payee identity has not yetbeen established. For example, the payee may be indicated as “cash”. Insuch an instance the user can add the payees name at a later date whenthe information becomes available. Alternatively, the assignment of thecheck can remain as cash. When the bank check is presented at thecashing terminal it would indicate whether it was assigned to “cash” orwhether the payee identification information has been entered at theissuing terminal.

Yet other modifications included in the system and method of the presentinvention contemplates that certain bank checks can be cancelled out ofthe system. Again by way of example, if a check is misplaced, or stolen,the payor can cancel the check at the issuing terminal. If the payor hasaccess to the Internet the check can be cancelled on the appropriatewebsite or through customized and authorized accounting/check writingsoftware. The system can be used to cancel a check and issue a new checkbut not alter the existing information on a previously issued check. Theissuer will be able to communicate with the processing center and cancelthe given check. However, the issuance of a new check will have to bedone manually at the issuing terminal or by computer software.Similarly, the system further includes “stop payment” procedures. When acheck is entered at the cashing terminal, appropriate personnel will benotified that a stop payment order has been issued for that check,preferably but not necessarily by communicating the order to theprocessing center. Also in any of the above embodiments and/ormodifications, a check can be post dated, when it is prepared at theissuing terminal. As is commonly practiced, the bank check can not becashed or otherwise redeemed until the established date.

Further, and preferably as practiced with all of the included preferredembodiments and modifications of the present invention, once the firstset of data has been established and communicated to the processingcenter, the amount or payee identification information can not bealtered. An exception to this would be instances, as set forth above,where it is determined that the amount is not to exceed $250.00, etc.and/or where the payee identification data indicates the assignment ofthe check is to cash. Moreover, if it is determined at the cashingterminal that a legitimate check was not registered such as by the firstset of data not being communicated to the processing center, the firstset of data can be re-transmitted from the issuing terminal. In suchinstances, none of the existing account or payee data can be altered.

Additional modifications which are contemplated in the system and methodof the present invention include activities and procedures of thecashing terminal. Such modifications include, by way of example only,that personnel at the one or more cashing terminals will be assigned anauthorized access code. Authorized personnel when entering the systemwould then be required to log in the authorized access code in orderthat procedures relating to the system and method of the presentinvention can be performed.

If a check has been damaged and is unable to be scanned optically,electronically, etc., the cashing terminal will be able to inputmanually certain portions or all of the data appearing on the bankcheck. Such data may include routing number, account number, checknumber as well as manually inputting the payee identificationinformation and/or monetary value or amount of the bank check. When apositive comparison has been determined, such as at the processingcenter, the check will be canceled out of the system. This will ensurethat no duplicate checks with the same information can be cashed.

Additional modifications contemplated by the system and method of thepresent invention may include the occurrence of a negative comparison atthe cashing terminal. If it is determined that the bank checks has notbeen entered into the system and is not fraudulent, the personnel of theprocessing center can communicate with the payor/issuing terminal bymeans of e-mail text messaging, etc. If the payor receives a textmessage, response can be made by re-transmitting the first set of datato the processing center. If the payor is contacted by telephone theappropriate access code of the payor would be entered preferably byinputting it into the issuing terminal and/or the telephone keypad.After the proper payor access code has been established, personnel ofthe processing center can convey to the payor, the appropriate data ofthe check. At that time, the payor/issuer can agree that the informationbeing conveyed is correct and thereby authorize the check to beredeemed. If the issuer/payor is notified by e-mail of the failure toregister the first set of data at the processing center, thepayor/issuer can use a secured website to correct the problem byre-transmitting the first set of data of the bank check in question. Forsecurity reasons verbal conveyance of an access code of the payor to theprocessing center, while possible, is not recommended.

These and other features and advantages of the present invention willbecome more clear when the drawings as well as the detailed descriptionare taken into consideration.

BRIEF DESCRIPTION OF THE DRAWINGS

For a fuller understanding of the nature of the present invention,reference should be had to the following detailed description taken inconnection with the accompanying drawings in which:

FIG. 1 is a schematic representation depicting an embodiment of thefacilities utilized in the performance of the system and method of thepresent invention; and

FIG. 2 is a flow chart schematically representing the various proceduresin the performance of one preferred embodiment of the system and methodof the present invention.

FIG. 3 is a flow chart schematically representing the various proceduresin the performance of another preferred embodiment of the system andmethod of the present invention differing from that of the embodiment ofFIG. 2.

FIG. 3A is a flow chart schematically representing the variousprocedures and the performance of yet another preferred embodiment ofthe system and method of the present invention differing from that ofthe embodiment of FIGS. 2 and 3.

Like reference numerals refer to like parts throughout the several viewsof the drawings.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

With reference to the accompanying Figures, the system and method of thepresent invention includes the use of an issuing terminal generallyindicated as 10, which is representative of one or more terminalslocated at different issuing sites. Although an individual may have anissuing site, such as when utilizing a personal computer, the issuingsite is preferably the location of a payor company or other entityand/or the location of an authorized payroll company, retained by thepayor to issue a plurality of checks, such as but not limited to payrollchecks. The system and method of the present invention also preferablyincludes access to a processing center, generally indicated as 12, whichis typically remote from the issuing site at which the issuing terminal10 is located.

A cashing terminal, generally indicated as 14, is further included inthe system and method of the present invention. The cashing terminal 14is representative of what may be an extremely large number of cashingterminals, which may be located at a plurality of different sites, allof which are most probably remote from both the issuing terminal 10 andthe processing center 12. The cashing terminal 14, by way of exampleonly, may be located at a bank or check cashing agency where the bankcheck, prepared and issued from the issuing terminal 10, is presentedfor redemption in terms of being deposited or cashed. Additionally, thecashing terminal 14 may be representative of a large number of suchterminals located at various retail establishments, which would bewilling to accept the bank check as payment for goods or services. Forthe purposes of this description, a bank check may include aninstitutionally issued check, one issued directly from a bank, apersonal check, various types of bonds, including bearer bonds and/orother types of negotiable instruments.

In addition to the above, the system and method of the present inventionmay also include communication with a central data system generallyindicated as 16. The central data system 16, if included, may be of thetype normally associated with automatic teller machine (ATM) networks,found throughout the United States, as will be explained in greaterdetail hereinafter.

The issuing terminal 10 preferably includes sufficient processor andmemory/storage capabilities to at least temporarily store and integratedata relating to the one or more bank checks prepared and issuedthereby, and if desired can be integrated directly with a checkprocessing and/or accounting computer by which the checks are normallyissued. In preparing and issuing bank checks, the issuing terminal 10preferably includes a first input facility, such as comprising a scannerassembly 18, and/or integral or remote connection to an accountingcomputer. The scanner assembly 18 can be in the form of an opticalscanner or other reader designed and structured to electronically readthe pre-printed account data found on the face of the bank check. Thescanner assembly 18 may take a variety of forms including, but notnecessarily limited to, a “swipe” scanner generally of the type used toread the magnetic strip on credit cards. A swipe-type scanner would bestructurally modified to read at least the account data pre-printed onthe face of the check and also could be structurally adapted to scan andelectronically read the printed, individualized payee data as well if ithas been entered in a machine readable form. Such pre-printed accountdata normally includes the payor's account number, a bank routing numberand check number, as well as other possible information. Of course, thefirst input facility associated with the issuing terminal may alsoinclude a keypad or keyboard 20 of somewhat conventional design, whichallows data to be manually entered into the processing and storagecapabilities of the issuing terminal 10 if direct connection is notavailable at the point of issuance. More specifically, the keyboard 20may, under some circumstances, be used for the manual entry ofindividualized payee data associated with each of the plurality of bankchecks being prepared. The keyboard 20 would be used to input theindividualized payee data in circumstances where such payee data was notautomatically printed in typical fashion, such as by computer facilityor the like, and a link between the issuing terminal and the printing oraccounting computer is not possible. Preferably, the payee data includesat least the name or other identification of the payee and/or the dollaramount or value of the check. Along these lines, the issuing terminal 10preferably includes a printer or like printing facility 22, so as toproduce any desired hard copy records of any data entered into andstored in the memory facilities of the issuing terminal 10 relating tothe one or more checks being processed.

The processing center 12, which may be a part of or remote from theissuing terminal 10 and/or the cashing terminal 14, is preferablycomputer oriented and includes a central processing unit or likefacilities 24 having the ability to receive data from a plurality ofdifferent sources, at least temporarily store and readily access suchdata, specifically but not exclusively for purposes of comparing varioussets of data, at least in terms of corresponding content. Morespecifically, and as explained in greater detail with reference to FIG.2, a first set of data relating to a particular bank check issued by theissuing terminal 10 and communicated and stored in the processing center12, would be compared, as to its content, with a second set of data,received from the cashing terminal 14, and relating to the same bankcheck, when such bank check is presented for redemption at the site ofthe cashing terminal 14. In addition to the above, the processing centershould also be capable of communication with the issuing terminal 10 asat 28 and the cashing terminal 14 as at 30.

Also in an alternative embodiment of the present invention thecommunication facilities of the processing center 12 may be capable ofcommunicating instructions and/or data information over first and secondcommunication links 90 and 92 to the central data system 16, as will beexplained in greater detail hereinafter. Communication between theprocessing center 12 and the issuing terminal 10, cashing terminal 14and/or the central data system 16, may take place by conventionalcommunication facilities including, but not limited to, telephone linecommunication such as that used for credit card verification. Inaddition to the conventional communication facilities such as anindividual call based telephone communication, as set forth above,communication between the processing center 12 and in particular theissuing terminal 10, can be accomplished by network communication, suchas a private and/or public network communication system. When usingnetwork communication, data presented to the processing center 12, atleast including information relating to which previously issued checkshave or have not been redeemed, as well as other informative data, couldbe accessed over the network system link, also represented as 28, suchas preferably utilizing a secure and/or encrypted connection. Such anetwork communication link 28, would allow personnel at the issuingterminal or other personnel authorized by the payor to find out whethera specific check has been verified and authorized for payment, as wellas a particular location or site of the cashing terminal 14 where anindividual check was redeemed. Naturally, the issuing terminal 10 couldalso be accessed to obtain and/or transmit such information, which wouldbe communicated to the processing center 12 for storage, upon completionof each check verification or non-verification by virtue of theexistence of the network communication link 28. Likewise, in such anembodiment, the information on the check could include routinginformation wherein the cashing terminal 14 communicates directly withthe issuing terminal 10, the processing center being directly associatedtherewith, with each issuing terminal 10 defining its own processingcenter.

In at least one preferred embodiment of the present invention, thecashing terminal 14 also preferably includes sufficient processingand/or storage facilities to adequately process, in the manner intended,the various data input from a second input facility, including a scannerassembly 34 and/or a manually actuatable keyboard 36. The scannerassembly 34 may be similar to scanner assembly 18, in that it may be inthe form of an optical scanner, electronic reader and/or “swipe” scannerdesigned and structured to identify or read the pre-printed account dataappearing on the face of the check, which is presented for redemption atthe cashing site, such as the bank, check cashing agency, etc. as setforth above. The scanner assembly 34 located at each of the plurality ofcashing terminals 14 could also be structured to electronically scan orread the payee data appearing on the check. The keypad or keyboard 36may be connected for manually inputting all or at least a portion of theindividualized payee data, which appears on the front of each of thebank checks presented for redemption in situations where the payee datais not scanned or electronically read. Therefore, in at least onepreferred embodiment the cashing terminal 14 and more specifically theprocessing facilities associated therewith, would integrate the scannedaccount data, as well as the individualized payee data, electronicallyor manually input into the terminal 14. The integration of the accountdata and the individualize payee data would therefore represent andestablish what may be termed a second set of data.

The first set of data, having been communicated over communicationfacilities 28 to the processing center 12, would preferably bepre-stored, at least on a temporary basis. The first set of data wouldnot need to be accessed until the second set of data is received overcommunication facility 30, from the cashing terminal 14. Other featuresassociated with both the issuing terminal 10 and the cashing terminal 14could include display facilities as at 10′ and 14′ associated with eachof the terminals respectively, such that any of a plurality of signalsor data generated by the processing center 12 could be readilycommunicated to the terminals directly and displayed on the displayfacility 10′ or 14′.

With reference to the preferred embodiment of FIG. 2, the verifying andauthorizing system and method of the present invention is described withregard to the preparation and processing of a single bank check. It isagain to be emphasized that the system and method of the presentinvention is of course structured to handle a plurality of such checks,utilizing one or more issuing terminals 10, at least one processingcenter 12 which may or may not be remotely located and a large number ofcashing terminals 14 most probably, but not necessarily, locatedremotely from the issuing terminal 10, the processing center 12, and thegeographical location of the central data system 16.

More specifically, in the preparation of a bank check, personnel at theissuing site, where the issuing terminal 10 is located, first inputs theaccount data appearing in pre-printed form on the face of the bank checkbeing prepared as at 40, by optically scanning or otherwiseelectronically reading such account information utilizing the scanningassembly 18 or other facilities, as set forth above. The individualizedpayee data, including at least the monetary value of the check and nameor identification of the payee, is added as at 42 to the processor ofthe issuing terminal 10, using the first input facility, such as thekeyboard 20. However, if the payee data has been previously printed onthe bank check, automatically, using conventional computer facilities orlike equipment, such individualized payee data may also beelectronically scanned using any of a number scanning assemblies 18,structurally capable of electronically reading both the account data aswell as the payee data. The account data and the individualized payeedata are then integrated into the storage and/or memory facility as at44, so as to establish what may be referred to as a first set of data.This first set of data is then communicated as at 46 to the processingcenter 12, wherein the CPU 24 thereof receives the first set of data asat 48 and at least temporarily stores such data for later access, as at50. In certain instances, where the bank check is prepared by softwareapplication, the above described scanning procedure may not be needed toextract and communicate the first set of data.

Subsequently, the bank check is presented for redemption at a cashingsite such as a bank, check cashing agency, retail establishment, etc.where at least one cashing terminal 14 is preferably located. Of course,a manual communication (telephone call) of the data, if present in amanually readable form on the check can also be accomplished to theprocessing center 12. Preferably, however, when the check is presentedas at 52, the account data appearing on the face thereof is opticallyscanned or otherwise electronically read or manually entered, so as toinput such data into the processing and storage facility of the cashingterminal 14. The individualized payee data appearing on the presentedcheck is also input either using keyboard 36, as at 56 or using thesecond scanner assembly 34. Further, at least a portion of the payeedata, such as the monetary value of the check may be entered more thanonce, such as twice. When so entered, correctly, the check will beconsidered authentic. In the preferred embodiment of FIG. 2, theintegration into the processing facilities of the cashing terminal 14,of both the account data and the individualized payee data, whichappears on the face of the presented bank check, thereby serves todefine and establish what may be termed a second set of data. The secondset of data, once established, is then communicated as at 58, usingapplicable communication facilities 30, to the processing center 12. Thesecond set of data is received as at 60 at the processing center 12,wherein the CPU 24 of the processing center 12 serves to access thepreviously stored first set of data and directly compare, as at 62, thecontent thereof with the second set of data received from the cashingterminal 14. Access to the first set of data of any given bank check canbe readily accomplished by the CPU 24, due to the matching of theaccount data at least in terms of identity of the payor as well as thenumber of the bank check. The comparison as at 62 of first and secondsets of data associated with any one bank check will result in the CPU24 generating either a verification signal 64′ or a non-verificationsignal as at 64″. The generation of a verification signal 64′ willresult when a positive comparison is made to the extent that the contentof the first and second sets of data identically correspond. However, anegative comparison results in the generation of a non-verificationsignal 64″ when the content of the first and second sets of data do notidentically correspond, thereby indicating a possibility of check fraud.By way of example, if a bank check is presented at the cashing terminal14, wherein a value of the check or the identification of the payeethereon has been altered, the CPU 24 at the processing center 12, willbe programmed to generate a non-verification signal 64″, since thecontent of the first and second sets of data would not be identical.

Subsequent to the comparison as at 62, the CPU 24 will generate eitherthe verification signal 64′ or the non-verification signal 64″, whichwill be communicated, as at 66 and 66′ to the cashing terminal 14 andreceived as at 68. The generated verification signal 64′ will bedisplayed at 14′ on the cashing terminal 14 and the personnel there willhave an authorization of payment as at 70 resulting in redemption of thecheck as at 72. If a non-verification signal is generated as at 64″ itis communicated as at 66,66′ to the cashing terminal 14 and payment orredemption of the presented check as at 74 will be prevented.

As set forth above, communication between the issuing terminal 10 andthe processing center 12 may be by network communication, wherein dataentered and processed in terms of individual bank checks presented forredemption at any one of a plurality of cashing terminals 14, would beimmediately accessible at the site of the issuing terminal 10 or anotherdedicated site. This would allow personnel at the issuing terminal 10 orat another site of the payor to immediately determine whether any givencheck, which has been previously issued, has been presented forredemption and also clearly indicate the location and/or identificationof the site in terms of identifying the cashing terminal 14 where thepresented check was verified and authorized for payment.

With regard to communication with the central data system 16, at least afirst communication 28′ may exist between the issuing terminal 10 andthe central data system 16, wherein the first set of data or at least aportion thereof is communicated to the central data system 16 forpurposes of suspending or isolating funds from the account on which thebank check is drawn at least equal to the amount or monetary value ofthe check. Such communication is also indicated in FIG. 2 as 28′.

Upon receipt of at least a portion of the first set of data, the centraldata system will serve to separate or isolate the funds as at 78.Subsequently, when the bank check presented at the cashing terminal 14has been verified as to its authenticity and payment has been authorizedas at 72, the cashing terminal 14 or at least personnel at the sitethereof, may also communicate with the central data system 16 as at 30′,wherein the amount or value of the bank check presented at the cashingterminal 14 would be debited as at 80, from the funds which have beenpreviously suspended or isolated as at 78.

FIG. 3 comprises a schematic representation of yet another preferredembodiment of the system and method of the present invention. Thispreferred embodiment differs from the embodiment of FIG. 2 primarily bydefining the content of the first set of data to include both accountdata and payee data of given bank check and defining the second set ofdata to include at least account data but not necessarily the payee datathat appears on the bank check at the time of redemption. In addition, apositive comparison or a negative comparison between the first andsecond sets of data at the processing center 12 by the centralprocessing unit 24 will result in the communication as at 66 and 66′ of“authenticating data” which is variable and which may differ from thecommunication of the verification signal 64′ and the non-verificationsignal 64″, as with the embodiment of FIG. 2.

More specifically, in order to facilitate verification proceduresthroughout the entire system and in particular those procedures involvedat the cashing terminal or site 14, the second set of data preferablycomprises the account data of the bank check at the time it is presentedfor redemption and is absent all or at least a portion of the payeedata, such as the monetary amount of the check and the payeeidentification appearing of the check at the time of redemption. Thiswill save time and effort of personnel at the cashing terminal or site14 having to manually or otherwise enter any portion of the payee dataas a part of the second set of data communicated to the processing site12 as at 30 in FIG. 3.

Accordingly, the second set of data received by the processing site 12,as at 60 is stored in the central processing unit 24 and compared with aportion of the previously received and stored first set of data relatingto the same or given bank check. Since the second set of datacommunicated to the processing center 12, as at 30 is absent all or atleast a portion of the payee data, only the account data is directlycompared with the account data included within the first set of data ofa given bank check. If the account data of the first and second sets arenot identical, a negative comparison occurs and the “authenticatingdata” communicated to the cashing terminal or site as at 66 and 66′ isin the form of a non-verification signal 64″. The result of such anegative comparison between the account data of both the first andsecond set of data will in turn result in a refusal to pay or redeem thebank check presented at the cashing site 14, as at 74.

However, a positive comparison, resulting from the account data of thefirst and second sets of data being identical will result in thegeneration of “authenticating data” communicated to the cashing terminalor site 14 as at 66 and 66′ in the form of at least a portion of thepayee data defining a part of the first set of data, determined at theissuing site 10, as described above. By way of example, the portion ofthe payee data communicated as at 66 and 66′ to the cashing site 14 andreceived as at 68′ may include the monetary value of the check or theidentity of the payee or both, at the time the given check was issued atthe issuing site 10.

Receipt of the authenticating data, resulting from a positive comparisonof the first and second sets of data, as at 68′ may be viewed orcommunicated to authorizing personnel, such as by the display 14′ at thecashing site or terminal 14. The receiving personnel then merely has tovisually compare the received portion of the payee data (monetaryamount, payee identify or both) with the corresponding payee dataappearing on the bank check presented for redemption. If these portionsof the payee data are identical, the personnel at the cashing site orterminal 14 can interpret this as a verification signal and proceed withredemption of the presented check as at 70, 72.

The remaining procedures as described with reference to the embodimentof FIG. 2 are also applicable with the embodiment of FIG. 3specifically, but not exclusively, relating to communication with thecentral data system 16 and the isolating and debiting of funds as at 78and 80. Therefore, with each of the above noted preferred embodiments,initial communication with the central data system 16, for purposes ofsupplying the first set of data thereto, can occur between theprocessing center 12 and the central data system 16 as at 90 rather thanhaving such communication occur directly between the issuing terminal 10and the central data system 16 by the first communication link 28′.

Similarly once the presented check has been verified and authorized forpayment at the cashing terminal 14, utilizing either of the preferredembodiments of FIGS. 2 or 3, the processing center 12 can furtherprovide instructions to the central data system 16, as at 92, forpurpose of debiting funds as at 80 from the isolated or suspended fundsassociated with the bank check. In this embodiment, perhaps additionalsecurity features would be added since the plurality of cashing sites orterminals 14 would not have any access to the account information of thepayor.

As yet another preferred, alternate embodiment, the present inventioncontemplates the use of an identifying access code as at 82. The accesscode is assigned to the issuing company and/or payor for the purpose ofidentification and authorization by the payor and as set forthhereinafter, to link the payor's checks to the processing center 12.More specifically, if an issued check is cashed, or not registered orotherwise communicated to the processing center 12, any such check,later submitted for redemption to a cashing terminal 14, will of coursenot be verified since there would be no record at the processing center12 of the existence of such a check and a person at the cashing terminalcould not be notified of the status of that check. At that point eitherthe cashing terminal 14 or the processing center 12 could communicate,by telephone communication or any other applicable means, with theissuing terminal 10 or personnel of the payor, located at the issuingsite and attempt to identify the presented bank check, at least in termsof the account data and a portion of the individualized payee data.Proof that the data received by telephone from the payor was authenticwould be verified by the payor supplying the identifying access code asat 82.

In addition to the above and as yet another alternate and preferredembodiment of the present invention, the check or other negotiableinstrument attempting to be authenticated and cashed may be processed ina manner similar to that described above. More specifically in thispreferred embodiment, the second set of data received by the processingsite 12, as at 60, is stored in the central processing unit 24. However,this “second set of data”, rather than being any portion of the accountdata or the payee data would be some other means of identifying, withcertainty, the specific check or other negotiable instrument beingprocessed. The second set of data, which may hereinafter be referred toas the “identifying data” may be derived from and/or correspond to“identifying information” disposed on and/or integrated into the checkor other negotiable instrument. Accordingly the creation or generationof the identifying data is accomplished by scanning or otherwisemanually inputting the identifying information.

Further, the identifying information may include, but is not intended tobe limited to, a specific code similar to but possibly distinguishablefrom the access code 82 as described with reference to FIG. 2. Otheridentifying information for a specific negotiable instrument or checkcould be electronically implanted or integrated and as such theidentifying information is capable of being accessible by scanning oroptically reading. However, the versatility of the structuring andformatting of the identifying information on the negotiable instrumentshould be such as to allow it to be manually input and therebycommunicated to the processing site 16 or other intended location in theform of the identifying data.

Regardless of its form, the identifying information should thereby becapable of being scanned, optically read or otherwise identifiedresulting in the creation or generation of the “identifying data”. Asset forth above, the previously, predetermined means of identificationmay also be manually inputted at the cashing terminal 14 by personnel.However, a more preferred modification of this preferred embodimentwould be the optical or electronic scanning or reading in order that anytype of typographical or other personnel errors may be avoided inentering the appropriate identifying data.

Once inputted, the identifying data would be compared with a portion ofthe data previously received and stored and recognized as a modificationof the “first set of data” relating to the same negotiable instrument orbank check. Since the identifying data communicated to the processingcenter 12 as at 30 is absent both the payee data and the account data,as with the previously described embodiments, it is compared directlywith “corresponding” identifying data transmitted to the processingcenter 12 by the issuing terminal as at 40 in FIG. 2, which may beconsidered a part of the first set of data as set forth above. It isagain emphasized that more sophisticated scanning equipment as at 18 and34 associated with the issuing terminal 10 and the cashing terminal 14,respectively may be required to accurately and reliably “read” theidentifying data.

Therefore, as part of this preferred embodiment, the identifying datawould be used to accurately and reliably identify a given negotiableinstrument. Once identified and recognized, this identifying data wouldbe communicated as at 58 to the processing center 12 as at 30. Insteadof receiving the second set of data 16 as represented in FIGS. 2 and 3,the identifying data would be received. Upon receipt, the identifyingdata received from both the issuing site 10 and the cashing site 14would be compared at the processing center 12. As a result, instead of averification, non-verification signal being sent as at 64′ and 64″ fromthe processing center back to the cashing terminal 14, all or apredetermined portion of the account data and/or payee data would becommunicated as at 66 and 66′ back to the cashing terminal 14 where itcould be displayed as at 14′ to personnel associated with the cashingterminal. The personnel at the cashing terminal 14 would then comparethe displayed data (account data and/or payee data) with correspondingdata appearing on the negotiable instrument presented at that time forredemption. If the data displayed as at 14′ correctly matched the datathen appearing on the negotiable instrument presented for redemption,the check would then be cashed and/or paid as at 70. This embodimentcould also include the further processing as in the previous embodimentsat least in terms of communicating 76 with the central data system 16 asat 30′.

Yet another preferred and alternate embodiment of the present inventionis a modification of the processing involved in the authenticationand/or verification of a variety of negotiable instruments including butnot necessarily limited to bank checks. It is emphasized that the term“negotiable instrument” is therefore meant to include currency, bankchecks, money orders, certified checks, bearer bonds and a variety ofother negotiable instruments commonly established and recognized in thebanking, commercial and financial industries. More specifically, thescanners 18 and 30 respectively associated with the issuing site 10 andthe cashing site 14 may be further developed to a more sophisticatedoperational or “read” level. More specifically, the scanners may bestructured to recognize any of a variety of different negotiableinstruments including currency, bank checks, etc., by means other thanaccount data, payee data, authenticating data and identifying data asdescribed with specific reference to the above-noted alternativeembodiments of the present invention. Such additional means ofrecognition and authentication, other than an electronic or manualcomparison of data would include, but most certainly not be limited to,the technology of the type developed by Applied DNA Sciences, Inc. ofLos Angeles, Calif. This company has developed a proprietary, non-humanDNA embedded security system which comprises the embedding of AppliedDNA™ and/or Applied DNA Marker System™ into currency as well as otherapplications including a variety of negotiable instruments, printedmaterials, etc. Plant or textile DNA would serve as an identifying“marker” system which has or will be developed for practical use byinserting an applied DNA marker during the textile manufacturing processenabling more sophisticated scanner technology to identify both thecountry of origin as well as specific factories of manufacture where theproduct and/or components were produced, assembled or otherwiseprocessed.

Further development indicates the ability to integrate a marker into thecotton fibers used to print currency as well as other substrate materialfor stamps and other printed security documents as a covert and forensicmarker. The program and technology would provide a cost effectivesolution as the marker will be applied directly into the securityprinting and/or currency manufacturing process. Further, a proprietaryDNA embedded biotechnology serves as a security solution, usingnon-human DNA, that will verify the authenticity and protect corporateand government agencies from counterfeiting, fraud, piracy, productdiversion, identify theft, and unauthorized access.

Therefore, this additional preferred and alternative embodiment of thepresent invention would involve the use of DNA as the above described“identifying information” embedded or otherwise integrated in thevarious types of negotiable instruments being processed in accord withthe present invention in order to accomplish an efficient and reliableauthentication and/or verification thereof. Therefore, the identifyingof negotiable instruments including currency, bank checks, etc., bymeans other than by scanning, reading or manually inputting accountdata, payee data, authenticating data, etc. is a feature thatdistinguishes this embodiment from those described above. Morespecifically, embedded or integrated DNA would be scanned using evenmore sophisticated scanner technology which is also schematicallyrepresented as scanner 18 associated with the issuing site 10 and thescanner 34 associated with the cashing site 14.

Yet another preferred embodiment of the present invention which can beused in combination with any of the above-noted embodiments is providedin order to conform to new Federal Reserve rules relating to thephysical transportation and processing of bank checks and/or othernegotiable instruments. More specifically, prior to the implementationof the new Federal Reserve rules, checks, once redeemed, were physicallytransported back to the bank of origin on which they were drawn, afterbeing physically processed by the appropriate Federal Reservefacilities. Such physical transportation and processing of courseinvolved excessive time, labor and costs based on the extremely largevolume of checks that are handled in the United States on a daily basis.As now allowed and provided by the Federal Reserve, physical processingof individual hard copy bank checks is no longer required. Therefore,with primary reference to FIG. 3A, once a check has been authorized andpaid as at 70, such as at the cashing terminal or site 14, additionalcommunication such as at 80 can be made to a scanner assembly 82 forpurposes of completely scanning one or both sides of the bank checkwhich has been redeemed. Such scanning should have sufficientcapabilities and sophistication to collect all information and datasufficient to satisfy the Federal Reserve rules relating to thesematters. Once so scanned, the collected data and/or information are usedto create an electronic “substitute check” as at 84. As indicated, thesubstitute check 84 can be electronically created and as such becommunicated for further processing as at 86 by the electronic deliveryof the substitute check 84 to the bank on which it was originally drawn.Thereafter a hard copy can be created using appropriate printers,optical scanners, etc. wherein the hard copy print of the check, ratherthan the original check, is returned to the payor through the bank onwhich it has been drawn. Therefore, the electronic transfer andprocessing of the data and information contained on and defining theelectronic substitute check will conform to the Federal Reserve rulesand save time, labor and costs previously associated with the physicalprocessing, transporting and delivery of the original checks.

In the implementation of this alternate, preferred embodiment, thescanning 82 can take place at the cashing terminal 14, and/or thecentral data system 16 and/or otherwise be associated therewith asindicated at 81 in FIG. 3A. Therefore, the scanning of appropriateinformation to satisfy the Federal Reserve rules is not limited to anoff-site scanning facility or location but may be a part of the cashingsite 14, the central data system 16, the processing center 12, theissuing site or terminal 10 and/or a combination thereof.

In addition to the above, additional security features may beincorporated which include some or all of the operational features ofthe above-described preferred embodiments such as, but not limited to, asituation where the negotiable instrument be processed and orauthenticated is a particularly high dollar amount. As with the other ofthe above described embodiments of the present invention, the term“negotiable instrument” is not limited to a bank check but can be anytype of instrument or financial application as recognized in thebanking, financial, or commercial industries. Such negotiableinstruments can be currency, bank checks, bearer bonds, common bonds,and a variety of other instruments.

Since many modifications, variations and changes in detail can be madeto the described preferred embodiment of the invention, it is intendedthat all matters in the foregoing description and shown in theaccompanying drawings be interpreted as illustrative and not in alimiting sense. Thus, the scope of the invention should be determined bythe appended claims and their legal equivalents.

Now that the invention has been described,

1. A system for verifying authenticity of a negotiable instrument, saidsystem comprising: a) an issuing terminal including a first inputfacility structured to generate a first set of data; b) a cashingterminal including a second input facility structured to generateidentifying data; c) said first set of data comprising at least accountdata and payee data as originally appearing on the negotiableinstrument, said identifying data derived from identifying informationexisting on the negotiable instrument when presented for redemption; d)a central processing unit communicatively linked to said issuingterminal and said cashing terminal and structured to compare identifyingdata existing on said negotiable instrument when issued with identifyingdata existing on the negotiable instrument when presented for redemptionat said cashing terminal, and said central processing unit furtherstructured to communicate at least some of said first set of data tosaid cashing terminal, for comparison at said cashing terminal, withsaid first set of data appearing on the negotiable instrument at saidcashing terminal.
 2. A system as recited in claim 1 wherein a positivecomparison between said first set of data communicated from said centralprocessing unit and said first set of data appearing on said negotiableinstrument at said cashing terminal comprises a verification ofauthenticity of said negotiable instrument.
 3. A system as recited inclaim 1 wherein said identifying information comprises DNA integratedinto said negotiable instrument.
 4. A system as recited in claim 3wherein said identifying information is detectable by a scannerassembly.
 5. A system as recited in claim 1 wherein said identifyinginformation is detectable by a scanner assembly.
 6. A system as recitedin claim 1 wherein said portion of said payee data comprises a monetaryamount of the negotiable instrument.
 7. A system as recited in claim 6wherein said portion of said payee data comprises an identity of a payeeof the negotiable instrument.
 8. A system as recited in claim 1 whereinsaid first set of data comprises identifying data from said negotiableinstrument.
 9. A system as recited in claim 1 wherein said negotiableinstrument comprises a bank check.
 10. A system as recited in claim 1wherein said payee data communicated to said cashing site is viewable ona display assembly for direct comparison with said negotiable instrumentby personnel at said cashing terminal.
 11. A method of verifyingauthenticity and authorizing payment of a negotiable instrument, saidmethod comprising: a) establishing a first set of data of a givennegotiable instrument including account data and payee data at anissuing site; b) communicating the first set of data as originallyappearing on the negotiable instrument to a processing site for storage;c) establishing identifying data from identifying information disposedon said negotiable instrument; d) communicating said identifying data asappearing on the bank check at a cashing site to the processing site andcomparing the identifying data to identifying data from the negotiableinstrument communicated to the processing site from an issuing site; e)communicating at least a portion of the first data to the issuing siteupon a positive comparison of said identifying data at the processingsite; and f) authorizing payment of the negotiable instrument at thecashing site upon a positive comparison of the first set of data withcorresponding data appearing on the negotiable instrument at the cashingsite.
 12. A method as recited in claim 11 further comprisingcommunicating at least a portion of the payee data from the processingsite to the cashing site upon determination of the positive comparison.13. A method as recited in claim 12 including at least a monetary valueas a portion of the payee data communicated to the cashing site.
 14. Amethod as recited in claim 12 including at least a payee identity as theportion of the payee data communicated to the cashing site.
 15. A methodas recited in claim 12 comprising comparing the portion of the payeedata communicated from the processing site with the payee data of thenegotiable instrument presented at the cashing site.
 16. A method asrecited in claim 11 comprising defining the identifying information asincluding non-human DNA.
 17. A method as recited in claim 11 comprisingdefining the identifying information as information being scanned andbeing integrated with the negotiable instrument.
 18. A method as recitedin claim 11 comprising defining the negotiable instrument as a bankcheck and creating an electronic substitute for the bank check afterauthorizing payment of the bank check at the cashing site.
 19. A methodas recited in claim 18 comprising creating the electronic substitutecheck by scanning the data from the original bank check.
 20. A method asrecited in claim 19 comprising including sufficient data on theelectronic substitute check for processing thereof in accordance withpredetermined Federal Reserve rules.
 21. A method as recited in claim 18comprising including sufficient data on the electronic substitute checkfor the processing thereof in accordance with predetermined FederalReserve rules.
 22. A system for verifying an authenticity of a bankcheck, said system comprising: a) an issuing terminal including a firstinput facility structured to generate a first set of data; b) a cashingterminal including a second input facility structured to generate asecond set of data; c) said first set of data comprising account andpayee data as originally appearing on the bank check, said second set ofdata comprising at least said account data as appears on the same bankcheck when presented for redemption; d) a central processing unitcommunicatively linked to said issuing terminal and said cashingterminal and structured to compare said first and second sets of data;e) said central processing unit further structured to communicateauthenticating data to said cashing terminal for comparison of saidfirst and second sets of data; f) said authenticating data comprising averification signal indicative of authenticity upon determination bysaid central processing unit of a positive comparison between said firstand second sets of data; g) an electronic substitute check generated forsubsequent processing after cashing of the given bank check; and saidelectronic substitute check structured for communication and processingas a replacement for processing the bank check.
 23. A system as recitedin claim 22 further comprising a scanning assembly structured to scanpredetermined sufficient data from said bank check for the creation ofsaid electronic substitute check in compliance with said predeterminedrules of the Federal Reserve.